Jim Cramer warns traders not to invest in digitization stocks: Recession ‘CPI’

Jim Cramer warns traders not to invest in digitization stocks: Recession ‘CPI’

Jim Cramer warns traders not to invest in digitization stocks: Recession ‘CPI’

Jim Cramer Mad Money (credit: google)

Advertisement
  • Jim Cramer warned investors on Wednesday not to invest in digitization stocks while the potential of a recession looming.
  • “You can’t rationalize owning them unless you believe the [Federal Reserve] will rapidly beat inflation without doing much more to harm the economy,” the “Mad Money” host added.

Jim Cramer warned investors on Wednesday not to invest in digitization stocks while the potential of a recession looming.

Advertisement

“You can’t justify owning these unless you believe the [Federal Reserve] will quickly beat inflation without needing to do much more to damage the economy. I think that’s a real possibility, but I wouldn’t want to bank on it by owning too many enterprise service companies,” he said.

Read More:  Twitter has caved into Elon Musk’s demand for access to its internal data

The “Mad Money” host’s remarks came after the three major indices fell slightly on Wednesday, as investors remain concerned about the possibility of an economic downturn.

According to Cramer, while digitization is unavoidable and the current economic upheaval is not on the same scale as the dot-com catastrophe, a recession may deal an unforgiving hit to the business.

“If the economy goes into a real recession – I mean a big stagflation tailspin – the pool of potential clients will indeed shrink. The digitizers can’t make as much money if their customers are strapped for cash,” he said.

Cramer added that a frozen IPO market could also lead to “serious shortfalls.”

Advertisement

Read More: IBM has begun a ‘orderly wind-down’ of its Russia business: Arvind Krishna

“There won’t be enough new clients, many of the existing ones won’t have enough money and there are too many competitors in this space fighting, perhaps, over a shrinking pie,” he said.

Advertisement
Advertisement
Read More News On

Catch all the Business News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story